At first, we have to multiply both the sides by 2. Therefore, we can get,
= (-5 × 2)
or, A = -10
Therefore, the value of A is -10. It remains negative because we cannot multiply both the sides by -1. If we do that, we cannot determine the constant.
The shorter period loan has the same total interest for the same loan amount, so it has the higher effective interest rate: 80/12 is higher than 89/14.
